I’m not going to go through it again. Happy to go through more in the Q&A. Obviously, it’s an exciting opportunity for us. So, we have these two operating businesses. We have Pharmaloz, we have Nebula Genomics, exciting operating businesses. Pharmaloz is profitable now. Nebula, we’re still investing in it, but besides the D2C business that’s going to grow, we have a B2B business that’s going to explode, probably more second half. And so we just have to see how that plays out. Then, we have two other opportunities that aren’t operating businesses now, Equivir and BE-Smart. Equivir, we’re looking to leverage our infrastructure from when we have the Cold-EEZE brand. We also have a small brand called Legendz XL that’s in many of the food, drug and mass stores.
So, we have the whole infrastructure, packaging, shipping, distribution, logistics, relationships with 40,000 food, drug, and mass stores. That’s what we’re looking to leverage in introducing Equivir as well as online. And then, our BE-Smart cancer test, multi-billion dollar potential. I like to think that that’s a wild card. We don’t need it. We have enough in our operating businesses between Pharmaloz and Nebula Genomics that if you’re an investor, I think you’re going to be incredibly pleased over the next one to two years with your investment especially at current stock prices. But now BE-Smart, if that clicks — when I say multi-billion dollar potential, that’s not just a number or word that I throw out that has no reality to it. There’s no competition for this test.
If this takes hold, it’s going to get scary. So, we’ll see what happens as we move forward. And again, I’m really pleased now with how our management team has developed. We recently hired in the past several people in our finance team. So, we have a much stronger finance team than we’ve ever had before. And we literally just hired in the recent past two very senior level executives to be in our B2B business at Nebula that Jason hired to add to our team. And so, we have the right infrastructure in place to really make this all take off. With that, I say thank you all so much for listening. We’re going to get to the Q&A now. I know I ran a little bit over, but I had so much to talk about today. Before we get into the Q&A, last year’s first half had COVID testing, and the second half we had a significant transition and startup costs, especially in Q4.
This year, Pharmaloz turns profitable in Q1, and we are investing significantly in the ramp up of Nebula B2B. Therefore, we are an entirely different company this year from a financial standpoint as we developed in 2024 compared to last year. Therefore, the goal of this call was to focus on this year’s business plan, not last year’s financials, especially given that we’re about to enter the second quarter. Last year’s financials, quite frankly, are irrelevant. We are a completely different business and business model. We’ve completely transitioned now. So, for the analysts out there, if you have any questions about last year’s financials, after you’ve had a chance to review our financials, please don’t hesitate to reach me directly. I’ll answer all your questions myself.
If they’re more complicated than what I can answer, I’ll put you on with our finance team and go over everything in glorious detail with you. Suffice it to say, we anticipate a significant improvement in the top-line and bottom-line sequentially each quarter moving forward, especially as we enter the second half of this year when Nebula B2B is anticipated to truly ramp up. And we have two wild cards, as I mentioned, with BE-Smart and Equivir that depending on timing could be significant contributors to both the top-line and bottom-line. And that’s in addition to Pharmaloz, which is already profitable and should be growing every quarter, both top-line and bottom-line going forward. And with that, Noella, that was a mouthful. I’m going to stop and take a drink and happy to answer questions if there are any.
A – Noella Alexander-Young: Thank you so much, Ted, for the presentation. So, we’ll now begin the Q&A. The first question is, “Hello, Ted. Thanks to you and your team for putting us in position to knock this thing out of the park. My question concerns the competitive advantage of Nebula Genomics in the WGS arena. How important is the bioinformatics database library, your New York USA location, and your pricing?”
Ted Karkus: Yeah. So frankly, they’re all important and they’re all important to different customers or in some cases, all three are important to a given customer. I don’t think there’s a lab in the world, literally, that can offer the package that we have. First of all, in this country, critically important that we have a laboratory base in this country. Several of the businesses we’re talking to now don’t want to send their specimens abroad, especially after the issues at one of the big ancestry companies with data leaks and all that stuff. And that’s also why I mentioned Sergio Miralles, our Head of IT. We have such a secure platform with his — the cybersecurity privacy data platform that he’s built. And then, the fact that we’re based in New York, the fact that we’re reliable, we have great turnaround times, the fact that we have great pricing, the fact that we have George Church behind us, by the way, as well as Russ Altman from Stanford.
We have four platforms of the best — not only do we have four platforms from the best companies, but because we’re one of the newest labs kids on the block, we also have the newest and latest equipment from the best companies. And as I mentioned, one of those companies has never sold one of their highly-efficient large-capacity machines in this country to anyone before us. We’re the first one to have the new equipment, and we’re ramping that up quickly. So, at our bioinformatics, we don’t know a company in the world that has our bioinformatics. So, we have companies from around the world that have access to distribution to our whole genome sequencing tests. And I can’t go into details because I don’t want to teach the competition what we’re doing.
